SMC to build emergency facilities for military men positve for coronavirus

April 15, 2020 | 12:01 am

SAN MIGUEL Corp. (SMC) is building emergency quarantine facilities near military hospitals across the country for uniformed personnel infected with the coronavirus disease 2019 (COVID-19).

In a statement on Tuesday, the conglomerate said it is constructing 10 emergency facilities with 15 beds each to avoid overcrowding situations in hospitals serving a huge number of patients with COVID-19.

“We are one with the country in finding ways to accommodate more patients as hospitals reach their full capacity,” SMC President and Chief Operating Officer Ramon S. Ang said.

The emergency centers will be built beside military hospitals located in Pasay City, Tarlac, Lucena City in Quezon Province, Cavite City, Palawan, Davao City, Cebu City, Zamboanga City, as well as near Veterans Memorial Medical Center in Quezon City.

Mr. Ang said that the COVID facilities will also be open for Persons Under Investigation (PUI) for the coronavirus disease 2019 from surrounding communities.

“These emergency COVID facilities we are helping build will serve not just our military front liners but also other PUIs in surrounding communities,” he said.

Recently, SMC, which has earmarked P500 million to purchase protective gear and other supplies, pledged to purchase 10,000 protective personal equipment (PPE) from a local garment manufacturer for medical workers in the frontline to fight the COVID-19 pandemic. — Adam J. Ang

How PSEi member stocks performed — April 14, 2020

April 15, 2020 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Tuesday, April 14, 2020.

Duterte urges ASEAN to keep trading amid global pandemic

April 14, 2020 | 9:28 pm

PRESIDENT Rodrigo R. Duterte said ASEAN countries must continue to trade within the bloc in order to ensure health and food security during the coronavirus disease 2019 (COVID-19) pandemic.

In remarks delivered during the Special ASEAN Summit on COVID-19 Tuesday, Mr. Duterte said ASEAN must prioritize cooperation to boost trade as a means of mutual support.

“ASEAN must remain open for trade. Crisis or no crisis, as no country can stand alone. Let us, therefore, ensure the supply chain connectivity and the smooth flow of goods within our region,” he said.

He focused on the need to produce urgently-needed medicine and medical equipment amid a global shortage for such goods as each country ramps up to contain the virus.

“We need to boost production and facilitate intra-ASEAN trade of these life-saving necessities,” he said.

Mr. Duterte added that ensuring food security was a key consideration after most countries resorted to lockdowns to contain the spread of the COVID-19.

“Food security is key in maintaining socio-economic and political stability, especially at a time of great difficulty for our people. We can ignore this only at our own risk,” he said.

Mr. Duterte also called on ASEAN countries to continue supporting vaccine and research and development initiatives. He added that the Philippines is ready to join the “Solidarity Trial” of the World Health Organization or the international clinical trials of medicines that can help cure the virus. — Gillian M. Cortez

Gov’t releases P132B in realigned funds vs novel coronavirus

April 14, 2020 | 9:27 pm

THE Palace said Monday that it released more than P132 billion so far to various agencies in order to boost the government’s capacity to contain the outbreak of coronavirus disease 2019 (COVID-19).

According to its third weekly report to Congress on how it is using its emergency funding during the public health crisis, the government said that as of April 9, it had released P132.323 billion of the P189 billion worth of funds so far realigned from the 2019 and 2020 National Budgets.

The P189 billion worth of realignments identified so far was reported last week in the second Palace report.

“The National Government is continuously augmenting its fiscal resources for the country’s COVID-19 response measures,” it said.

Under the Bayanihan to Heal As One Act, the President was authorized to redirect budget funds toward the virus containment effort.

The Department of Social Welfare and Development (DSWD) received P100 billion of the funds released. The DSWD applied the emergency funding to its Social Amelioration Program, which provides cash subsidies to 18 million vulnerable households affected by the enhanced community quarantine (ECQ). The subsidies were for April.

More than P30 billion went into the Bayanihan Grant to Cities and Municipalities, which will boost local government units’ capacity to respond to the outbreak and the disruptions brought on by the quarantine.

The Department of Labor and Employment received P1.5 billion which will go towards helping workers who were displaced by the ECQ.

According to the report, P63 billion represented funds repurposed from the various agencies’ budgets to aid in the COVID-19 response of the government.

“From the period of 01 April to 08 April 2020, the LBP remitted to the BTr (Bureau of Treasury) cash balances from various government agencies amounting to a total of P63.60 billion,” it said.

LBP is state-owned Land Bank of the Philippines, in which many government offices maintain their deposit accounts.

In the report, the Department of Finance (DoF) said the Philippines has sufficient funds and potential borrowing capacity to deal with the COVID-19 crisis.

“(T)he DoF, while it is not aware of any such recommendations from the International Monetary Fund, states it is confident that the Philippines has the financial capacity to address the COVID-19 pandemic.”

The report added that the Senate has proposed to increase deficit spending to 10% of Gross Domestic Product, a steep escalation from the 3% deficit level deemed prudent. In recent years, the government has sought to exceed the 3% level to support its infrastructure program. — Gillian M. Cortez

DBM: emergency boosted state’s budget usage rates

April 14, 2020 | 9:27 pm

THE budget usage rate exceeded 100% during the crisis-hit month of March as emergency spending ramped up during the public health emergency and the ensuing quarantine, the Department of Budget and Management (DBM) said.

The usage rate, as measured by an indicator known as the Notice of Cash Allocation (NCA), was 98.5% in the first quarter, pulled up by contingency spending in March, which hit P278.567 billion, some 18.54% over the P234.979 billion budgeted for the month.

The NCA utilization rates in February and January were 87% and 74% respectively.

An NCA is an authorization issued by the DBM clearing agencies to disburse funds to pay for projects and programs.

Late last month, DBM said it released the NCAs for line agencies’ spending requirements for the second quarter to ensure “unhampered” government efforts to contain the coronavirus disease 2019 (COVID-19) outbreak.

The early release will also ensure uninterrupted compensation for all public officials and employees, including those under job order schemes, it said. — Beatrice M. Laforga

Makers of hygiene products, pet food cleared to resume operations — DTI

April 14, 2020 | 9:26 pm

MANUFACTURERS of hygiene products and pet food have been allowed to resume operations during the extended enhanced community quarantine (ECQ), the Department of Trade and Industry (DTI) said.

According to DTI Memorandum Circular 20-16 issued on April 13, producers of these product categories have been cleared to operate, as have their suppliers and workers.

The DTI said workers must be able to present company identification and a certificate of employment.

The department encouraged companies granted exemptions from ECQ to provide on-site or near-site accommodations and shuttle services for their workers.

It also granted exemptions for deliveries of pet food and hardware products.

DTI in Memorandum Circular 20-15 also issued on April 13 capped the working hours for retail establishments authorized to operate during the ECQ at 12 hours per day.

This includes retailers selling prime commodities and essential goods like medical products, including supermarkets, groceries, agri-fishery stores, public markets, and pharmacies.

DTI on Saturday cleared export-oriented and outsourcing companies to operate, subject to the provision of accommodations and shuttle services for workers. It also permitted the delivery of equipment for work-from-home arrangements as well as telecommunications support.

The ECQ was extended to April 30, from the initial April 12. — Jenina P. Ibañez

PAGCOR turns over P6 billion more in dividends to OP

April 14, 2020 | 9:24 pm

THE Philippine Amusement and Gaming Corp. (PAGCOR) remitted P6 billion worth of dividends to the government Monday, after state-owned firms were ordered to provide funding for the coronavirus disease 2019 (COVID-19) containment effort.

In a statement Tuesday, PAGCOR said it turned over P6 billion to the Office of the President’s (OP) Socio-Civic Funds Project, bringing its total funding for the OP to P14.5 billion.

It also remitted a P12-billion cash dividend to the national government last month to bring its total contribution to P26.5 billion.

“The recent remittance to OP is pursuant to PAGCOR’s mandate to allocate its earnings to finance infrastructure and socio-civic projects,” PAGCOR Chairman and CEO Andrea D. Domingo was quoted as saying.

Ms. Domingo said PAGCOR continues to remit funds during the COVID-19 outbreak despite incurring P5-6 billion worth of monthly losses from the suspension of gaming activities.

“Despite experiencing losses due to the suspension of operations of our owned and licensed gaming facilities for almost a month now, we are doing our best to provide much-needed help to the government during this time of crisis,” she said. — Beatrice M. Laforga

Telecom companies ordered to submit business continuity plans

April 14, 2020 | 9:23 pm

THE National Telecommunications Commission (NTC) is requiring all public telecommunication entities and internet service providers to submit business continuity plans to ensure uninterrupted services during the enhanced community quarantine (ECQ) and the greater dependence on the industry by workers performing their duties remotely.

In a statement Tuesday, the Department of Information and Communications Technology (DICT) said the NTC’s directive also aims to “address the increased demand for information and communication technology (ICT) services.”

“The reports on the business continuity plans are expected to be submitted to the Office of the Commissioner of the NTC on or before April 17, 2020,” the DICT added.

The department said the NTC intends to “boost efforts at maintaining the operation of vital ICT services and supporting infostructure as the administration extends the ECQ until the end of April 2020 to manage the COVID-19 (coronavirus disease 2019) threat.”

Multinational technology company Zoho Corp. Vice-President and General Manager for Asia Pacific Gibu Mathew told BusinessWorld in a recent e-mail that the crisis highlights the importance of contingency measures including insurance, a risk management team, and a comprehensive recovery program.

Asked if Philippine companies are taking business continuity planning seriously, he said: “Instead of a proactive one, many companies are taking a more reactive business continuity planning approach in dealing with business challenges.” — Arjay L. Balinbin

Crisis logistics allows more than 5,000 farmers to sell directly

April 14, 2020 | 9:23 pm

A DIRECT-marketing program has allowed more than 5,000 farmers to bypass middlemen as well as checkpoints during the enhanced community quarantine that locked down Luzon to contain coronavirus disease 2019 (COVID-19), the Department of Agriculture (DA) said.

Agriculture Secretary William D. Dar said the direct-marketing program, known as Kadiwa ni Ani at Kita, has engaged thousands of Benguet farmers who would have otherwise been shut out of the key Metro Manila market due to movement restrictions.

“The Benguet Agri-Pinoy Trading Center reported a total of 5,568 farmers who directly benefited from the Kadiwa orders,” Mr. Dar said.

The DA has been seeking to maintain the flow of food to locked-down communities by issuing checkpoint passes to accredited truckers, setting up Kadiwa markets in various locations, and tapping its own logistics assets.

According to Assistant Secretary for Agribusiness and Marketing Kristine Y. Evangelista, the Kadiwa program has three channels for bringing food to consumers — the Kadiwa on Wheels mobile market, the Kadiwa Online service, as well as the more traditional physical markets, known as Kadiwa Retail.

The DA’s logistics and transport system is known as Kadiwa Express.

“We are happy that our local chief executives and private sector are heeding our call and taking advantage of reasonably-priced agri-fishery products sold in Kadiwa outlets,” Mr. Dar said.

Around 80 barangays and cities in the National Capital Region and surrounding provinces have hosted Kadiwa markets. The participating local governments include Cainta, Rizal, Caloocan, Manila, Pasig, Navotas, Taguig, Pasay, Mandaluyong, and Pateros. — Revin Mikhael D. Ochave

Peso weakens vs dollar on oil, policy-easing signals

April 14, 2020 | 9:00 pm

THE PESO declined as oil prices rose. — *BW FILE PHOTO*

THE PESO weakened against the greenback on Tuesday after a correction in global oil prices and following recent signals of more easing from the central bank to support the economy amid the coronavirus disease 2019 (COVID-19) pandemic.

The local unit finished trading at P50.63 per dollar on Tuesday, depreciating by 3.5 centavos from its P50.595 close on Monday, according to data from the Bankers Association of the Philippines.

The peso opened the session at P50.63 per dollar. Its weakest showing was at P50.65 while its intraday best was at P50.54 against the greenback.

Dollars traded went up to $340.4 million on Tuesday from the $194.2 million traced on Monday.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort attributed the local unit’s slight weakening to the correction in oil prices. He, however, noted that the peso continues to be resilient as the Tuesday close is still among its “strongest in a month and in 2 years.”

“The peso closed weaker after some slight increase in the global oil prices recently after OPEC+ (Organization of the Petroleum Exporting Countries) agreed over the weekend to reduce oil production output,” Mr. Ricafort said in a text message.

Reuters reported that oil prices inched up by more than 1% on Tuesday with shale output in the US predicted to decline the most in April, aside from the recent cuts from other major producers.

Brent futures inched up by 53 cents or 1.7% to $32.27 a barrel by 0420 GMT after settling 0.8% higher on Monday. Meanwhile, US West Texas Intermediate (WTI) crude was up 32 cents or 1.4% at $22.73 following a 1.5% slip the previous session.

The OPEC reached a deal to slash output by 9.7 million barrels per day in May and June, which would translate to about 10% of global supply before the outbreak.

Meanwhile, a trader said the peso depreciated following comments from the central bank chief.

“The local currency weakened in anticipation of more dovish actions from the BSP (Bangko Sentral ng Pilipinas) to stimulate the Philippine economy from the impact of the COVID-19 lockdown,” the trader said in an e-mail.

BSP Governor Benjamin E. Diokno said on Sunday they are eyeing a “deeper cut” in interest rates as well as another 200-basis-point (bp) reduction in the reserve requirement ratio (RRR) of banks to stem the impact of the outbreak on the economy.

On March 19, the BSP slashed key rates by 50 bps to bring the overnight reverse repurchase rate to 3.25% and the overnight lending and deposit rates to 3.75% and 2.75%.

The BSP has cut rates by 150 bps since 2019, almost completely reversing the 175 bps in hikes implemented in 2018.

The Monetary Board will have its next policy-setting meeting on May 21.

Meanwhile, the RRR of universal and commercial banks was trimmed by 200 bps earlier this month to 12% in a move to boost liquidity amid a lockdown in Luzon.

For today, Mr. Ricafort gave a forecast range of P50.50 to P50.75 per dollar, while the trader expects the local unit to move around the P50.55 to P50.75 levels. — L.W.T. Noble with Reuters

PSE index ends above 5,700 on China trade data

April 14, 2020 | 9:00 pm

THE MAIN INDEX sustained its climb on Tuesday and broke into the 5,700 level, as investor optimism was fueled by positive trade data from China.

The 30-member Philippine Stock Exchange index (PSEi) went up 169.90 points or 3.02% to close at 5,780.88 yesterday. The broader all shares index likewise increased 88.32 points or 2.61% to 3,468.95.

“The market went up along with Asian markets today as investor sentiment turned positive when China released better-than-expected trade data,” Timson Securities, Inc. Trader Darren T. Pangan said in a text message on Tuesday.

“We have entered the 5,700 area but the coming days have to be observed if this level holds,” Mr. Pangan said.

China reported yesterday its exports and imports figures improved for the month of March compared to in January and February, as exports fell 6.6% and imports slid 0.9% year-on-year.

“This gave investors some optimism that the biggest economy in Asia is recovering faster than expected. This optimism overshadowed the jump in global COVID-19 (coronavirus disease 2019) cases overnight…,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail.

The global COVID-19 tally as of Tuesday afternoon showed cases reached 1.93 million, and deaths have risen to over 119,000. In the Philippines, cases jumped to 4,932 as of Monday, with deaths reaching 315 and recoveries hitting 242.

All sectoral indices at the local bourse were gainers yesterday. Industrials led as it climbed 319.71 points or 4.35% to 7,655.60, followed by services which went up 54.01 points or 4.31% to 1,306.04.

Financials increased 44.05 points or 3.79% to 1,206.04; mining and oil climbed 165.77 points or 3.68% to 4,660.79; holding firms added 131.03 points or 2.36% to 5,664.59; and property picked up 62.43 points or 2.13% to 2,992.82.

Value turnover stood at P7.38 billion with 979.02 million issues changing hands, up from Monday’s P5.2 billion with 539.99 million issues.

Advancers beat decliners, 158 against 53, while 32 names ended unchanged.

Foreign outflows continued with a net selling of P1.29 billion yesterday, jumping from the P587.63 million logged on Monday.

“It (the PSEi) is coming up against its major resistance at 5,800, we may see some profit-taking in the next few days as a result. The general sentiment is cautious optimism as investors are willing to take a chance but will flee at the first sight of a reversal,” Mr. Mangun said.

Meanwhile, the Dow and S&P 500 fell on Monday as US companies prepared to kick off a quarterly earnings season expected to be rough due to the coronavirus pandemic, while Amazon.com gains helped the Nasdaq end higher, Reuters reported.

The Dow Jones Industrial Average fell 328.6 points or 1.39%,to 23,390.77; the S&P 500 lost 28.19 points or 1.01% to 2,761.63; and the Nasdaq Composite added 38.85 points or 0.48% to 8,192.43. — Denise A. Valdez with Reuters

COVID-19 cases may jump to 44,000 by end-April

April 14, 2020 | 7:48 pm

By Vann Marlo M. Villegas, Reporter

CORONAVIRUS CASES in the Philippines may multiply by almost nine times to 44,000 by the end of the month, better than without a lockdown for the entire Luzon island that started on March 17, according to university health experts.

Infections could reach 9,000 to 44,000 by end-April, a team of experts from the University of the Philippines (UP) said in a report posted on its website, noting that it now takes six days to double the number of infections compared with just three days before.

“This indicates the relative success of the enhanced community quarantine — along with other interventions — in containing the spread of the virus,” according to the report. “However, we must not simply rely on the number of cases as a means to project courses of actions.”

President Rodrigo R. Duterte locked down Luzon on March 17, suspending work, classes and public transportation to contain the coronavirus disease 2019 pandemic that the Department of Health yesterday said had sickened 5,223 people.

The agency reported 291 new infections and 20 more deaths on Tuesday, raising the death toll to 335.

Fifty-three more patients have gotten well, bringing the total recoveries to 295, it said in a bulletin.

In their report, the UP experts said the COVID-19 virus had a fatality rate of 5.38% and a reproduction number of 0.6398 in the Philippines, which means the lockdown had been effective in containing the pandemic.

While the enhanced community quarantine seemed successful, expanding its area “may not be sustainable over the long run,” the experts said, adding that extending the restrictions on the movement of goods and services might “unnecessarily paralyze the economy.”

“In light of this reality, our best recourse after April 30 is to implement graduated activation of the enhanced community quarantine depending on the level of risk in certain areas at a given time,” they said.

“Under this setup, provinces (or even lower-level local government units) may be put under enhanced community quarantine depending on how close or far they are to an estimated outbreak threshold,” they added.

The UP experts said they were conducting “epidemiological approaches in disease mapping” at the provincial level to determine the potential of an outbreak spread and getting the ratio of the number of cases to the estimated outbreak threshold.

They said provinces whose cases are 75% less than the estimated threshold need not declare a lockdown as long as they observe preemptive measures. Those whose cases are at least equal to the threshold should continue the quarantine.

They also recommended an automated data collection system in local governments, noting that getting real-time data makes it easier to estimate the rate of spread and identify hotspots and outbreaks.

Health Undersecretary Maria Rosario S. Vergeire yesterday said the government has started expanded mass testing for the COVID-19 virus and would prioritize patients and health care workers in critical condition and showing severe symptoms.

“We will then test people with mild symptoms and those aged more than 60 years, with underlying conditions or high-risk pregnancy,” she said at a separate briefing in Filipino.

Patients and health care workers who have mild symptoms, even if they are not among vulnerable, will be next in line.

Ms. Vergeire said testing is recommended for those who have been exposed to COVID-19 patients.

There are now 15 testing laboratories in the country, while 28 institutions were undergoing certification and 37 have expressed a desire to become testing laboratories.

DoH has distributed more than 43,000 personal protective equipment to various hospitals, facilities and laboratories and expects the delivery of 230,000 more next week, Ms. Vergeire said.

The Luzon lockdown was supposed to end on April 13, but Mr. Duterte extended it by two more weeks until April 30.

The coronavirus disease 2019 has sickened 1.9 million and killed almost 120,000 people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization.